Since July 29, Bitcoin price has struggled to reclaim the $70,000 mark, which has proven to be a formidable resistance barrier for the leading cryptocurrency. This resistance level has held for the last two quarters of the year, after BTC hit an all-time high of $73,700 in March of this year.
Since then, the market has gone through several price corrections and consolidation periods, but recent bullish sentiment has raised hopes of a price recovery as the new year begins.
Is $70,000 within reach?
Market analyst Rekt Capital has provided insight into Bitcoin's current trajectory, highlighting its recent uptrend and the potential for the cryptocurrency to re-reach the $70,000 mark.
Notably, Rekt points out that Bitcoin broke out of a falling channel after surpassing $65,000 earlier this month, essentially invalidating a series of lower highs that had been set since mid-March.
This breakout signals the end of the previous downtrend. Rekt notes that Bitcoin has repeatedly failed to break above the channel's resistance, but the most recent weekly close has changed market sentiment.
In his analysis, Rekt explained that Bitcoin is currently retesting previous resistance above $69,000, suggesting that a successful retest could confirm the breakout and pave the way for further upside.
Rekt further explained that a retest of the current lower support levels could send Bitcoin price down to around $66,300, which is the channel top. This level has previously acted as a significant barrier, preventing the price from reaching higher levels.
Rekt pointed out that last weekâs performance demonstrated the importance of this area as Bitcoin closed above its lower high, setting the stage for a possible move higher if the aforementioned support level holds.
Key Resistance Challenge Coming Up for Bitcoin
If Bitcoin successfully retests this support level, the analyst expects the next target to be the range high of around $71,500. This level marks a key challenge for Bitcoin, as it would signal the first attempt to break above the top of the consolidation range since June.
Rekt further argued that a successful move towards the region above these levels would demonstrate that previous resistance is weakening, thereby boosting the prospects of BTC reaching higher levels.
However, the question remains: how deep can the retracement be if Bitcoin faces rejection at the highs? Historically, since mid-March 2024, Bitcoin has encountered deeper rejections, with declines of 21% to 25% on August 5 and September 6, respectively.
Rekt concluded that BTC is moving deeper into the previous resistance zone at $66,000, which could soon turn into support. A successful retest of this level could lead to a significant reversal back to $70,000, reinforcing the bullish outlook for Bitcoin as it navigates through these key price levels.
